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Companies with LMCs are less prone to disputes, study confirms

Rose Maria C. Mamaoag 

Quezon City—Companies that have adopted plant-level mechanisms for communication and joint problem-solving are less likely to be involved in cases filed with the NCMB. 

This is one of the major findings of the study conducted recently by the Workplace Relations Enhancement Division (WRED) of the National Conciliation and Mediation Board (NCMB). 

The study sought to assess the effectiveness of workplace cooperation and partnership mechanisms, or LMCs, established by the NCMB in companies nationwide.   

It specifically evaluated LMCs in terms of prevention of disputes and resolution of workplace related issues. The study covered the period 2005-2010. 

The study found that only about 7% of companies with LMCs were threatened with a strike at any given year during the six-year period, indicating that a huge 93% of companies with plant level mechanisms were dispute-free during said period. 

A significant 37% (or 95 companies)  of the sample of 257 companies were found to be completely free from involvement in any NCMB case after the setting up of their LMC, the study further revealed. The sample was taken from more than 1,000 LMCs that have been existing prior to 2005. 

An LMC is a voluntary body composed jointly of representatives from labor and management who meet to identify and resolve issues of common interest. It is designed to help preserve or restore industrial peace and to encourage positive interaction between management and workers.  

As of September 30, 2011, there are 1,759 LMCs all over the Philippines. These LMCs continue to benefit workers and employers in terms of best management practices, improved productivity, open communication lines, improved corporate social responsibility, and fewer incidences of labor disputes.

 

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